Serenity: AMD is actively securing CW laser supply, or indicating that upstream supply bottlenecks are beginning to emerge

BlockBeats News, June 17 — Serenity posted, saying that, according to a TrendForce report, AMD is actively ensuring CW laser supply through multiple major procurement orders. It believes this may only be the beginning of supply bottlenecks. There is not much remaining independent capacity in the Western supply chain; aside from SIVE, AAOI, and possibly Macom, there is limited room. Especially after Lumentum and Coherent signed multi-year agreements with NVIDIA, related capacity has been further locked in. It disclosed that it currently holds SIVE and AAOI.

Serenity said that Lumentum has been constrained by CW laser supply, and may be sourcing from Japanese companies such as Sumitomo and Furukawa, which may also be approaching full production capacity. It cited the TrendForce report, saying that AMD’s move is “to ensure that its future capacity will not be constrained by NVIDIA and other major cloud service providers (CSPs).”

After seeing NVIDIA and AMD sign long-term agreements, other hyperscale cloud providers such as Amazon and Microsoft may also try to lock in capacity next. It said this is largely a game of preventing supply from being held up by competitors, and that AMD may be knocking down the first domino after NVIDIA. Serenity said this also shows that the CW laser bottleneck and related companies have extremely high value.